ADMINISTRATIVE REPORT

Date: April 6, 1999
Author/Local: J. Beresford / 7789

RTS # 00671

CS&B Date: April 29, 1999

CC File No. 1805

TO:	Standing Committee on City Services and Budgets
FROM:	Director of Finance
SUBJECT:	Contract Extension- Ray-Cam Community Co-operative Association

RECOMMENDATION

A. THAT Council approve a three-year contract extension to Ray-Cam Community Co-operative Association, for the period January 1, 1999 to December 31, 2001, at a cost of $116,900 for 1999; source of funds to be the 1999 Operating Budget.

B. THAT Council approve an adjustment to the 1999 contract funding in Recommendation A ($7,900 estimate) to the Ray-Cam Co-operative Centre Association to offset the cost of salary reclassifications of day care workers covered under the contract; source of funds to be the Contingency Reserve.

C. THAT Council approve a one-time adjustment of up to $4,600 to provide funding for retroactive wage settlement costs related to salary reclassifications of day care workers, subject to the Association demonstrating they are unable to cover the costs; source of funds to be the Contingency Reserve.

D. THAT the Director of Legal Services be authorised to finalise and execute the contract to the satisfaction of the Director of Finance.

GENERAL MANAGER’S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of Recommendations A to D.

COUNCIL POLICY

On April 6, 1993, Council approved a three-year contract with RayCam Community Co-operative Association.

On April 16, 1996, Council approved a three-year contract extension with modifications to the original terms.

Approval of Contracts over $300,000 requires Council approval.

PURPOSE

The purpose of this report is to seek Council approval for a three year contract extension with the RayCam Community Co-operative Association for the operation of core programs at the centre, and to provide funding for wage settlements related to staff positions covered under the contract.

BACKGROUND

RayCam Community Co-operative Association (RayCam), located on East Hastings St., provides services to a diverse community that is challenged by social, multicultural and socio-economic issues in addition to the current problems faced by the down-town east side. RayCam is a non-profit community based organization that provides a wide range of social, recreation and job-training programs to local residents.

The City has provided funds to supplement the operating costs of the four core programs operated by RayCam for a number of years; the Special Needs Daycare, the Latchkey program, the Family program and a Youth Worker.

The original three-year contract with RayCam was approved by City Council on April 6, 1993, with a further three year extension to the original contract approved by Council on April 16, 1996, that included modifications to the original terms. RayCam has not requested any further modifications to the existing contract, and City staff are satisfied that the contract continues to accurately represent the interests of the City in relation to the core programs provided.

On March 20, 1999, the RayCam Board approved core City funding of $116,900 as a base for the 1999 - 2001 three-year contract on the understanding that Council approval is required for the disbursement of City funds. Adjustments to this amount are required for salary reclassifications of the day care workers covered under the contract, and retroactive settlements for day care wages prior to 1999.

DISCUSSION

The current 3 year contract with RayCam expired on December 31, 1998. City staff and RayCam staff have met to discuss renewal of the contract, which included a review of the operation, the 1998 financial results, alternative funding sources as well as the ongoing commitment from the Provincial Government.

FUNDING

Recommended base funding for 1999 is $116,900 representing an increase of 1.8% over 1998 funding level of $114,800. This is $900 greater than the 1% contractual salary increase (CUPE 15) that would otherwise be provided. However, over the last three-year contract term, the City did not provide any supplementary funding for legislated fringe benefit cost increases, or planned salary pay step increases. As such the requested increase is nominal.

Additional funding of $7,900 (estimate) is further recommended to provide for salary reclassifications of the day care workers covered under the contract. Retroactive pay for these positions is estimated to be in the range of $4,600 but cannot be absolutely determined until ongoing negotiations to settle the period of retroactivity conclude. RayCam staff have agreed that they will aggressively pursue fund raising dollars to offset as much of the retroactive cost as possible. They will, however, look to the City for the balance.

Sources of Funding:

The Provincial Government funds approximately 41% of the total operation, and as such provides the largest single portion of operational revenue (source: 1998 consolidated financial statements). With the ongoing changes in responsibility and scope of the various Ministries, there is some uncertainty in the minds of the RayCam staff as to how RayCam could be affected. Discussions between and RayCam and Ministry staff, including the Deputy Minister, continue. At this point there is nothing tangible to suggest that the level of Provincial Government support will be affected.

RayCam Community Association provided approximately 31% of the total funding, generated through program revenue.

The City of Vancouver funded 14% , including base funding covered under this contract plus grant funding for other purposes.

Federal Government funding provided 8% with the remaining 6% coming from Association fund raising activities.
1998 REVENUE - summary

Province of British Columbia $405,690
RayCam Community Association $303,790
City of Vancouver (includes other grants)* $140,880
Federal Government $ 75,000
Fundraising and Other $ 56,634
TOTAL $981,994

*Excludes funding provided by the Park Board of $468,200 during RayCam’s 1998 fiscal year.

1998 RESULTS

The total (consolidated) operation continues to operate with a fund deficit. In 1998 the fund deficit grew marginally to $17,822 in 1998 up from $13,071 in 1997.

Individual programs co-funded by the City contract remain relatively stable from a financial perspective. Operating results for these programs are shown below.

1998 1998 1997

Excess of Revenue
Over Expenditure* Fund balance Fund Balance

Day Care Program $6,621 $4,032 $(2,589)
Out of School Care Program $(342) $4,439 $4,781
Family Program $ 0 $(10,264) $(10,264)
Youth Worker Program $(8,926) $(15,069) $(6,143)

* ($) denotes a deficit

CONCLUSION

The recommended three-year contract renewal with RayCam Community Co-operative Association will provide the Association with the funding necessary to operate the four core programs; the Special Needs Daycare, the Out of School Care (Latchkey) program, the Family program and a Youth Worker.

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(c) 1998 City of Vancouver